0
What else can I help you with?
Distinguish between legal entity and accounting entity?
An accounting entity is the economic unit, the business that is being accounted for and not necessarily a legal entity (Sands J 2002). I currently manage and submit accounting reports for a business unit within the company I work for, the business unit is an accounting entity with retained earnings, assets, etc... however the business unit is not in itself a legal entity, it is a department within a legal entity.
What is substance over form concept in accounting?
SUBSTANCE OVER FORM is an accounting concept where the entity is accounting for items according to their substance and economic reality and not merely their legal form.
The Proprietary Theory vs the Entity Theory?
PROPRIETARY THEORYPROPRIETARY THEORY is where no fundamental distinction is drawn between a legal entity and its owners, i.e. the entity does not exist separately from the owners for accounting purposes. The primary focus is to report information useful to the owners, and therefore the financial statements are prepared from their perspective.ENTITY THEORYENTITY THEORY is where a legal entity is regarded as having a separate existence from the owners. The financial statements are prepared from the perspective of the entity, not its owners.
How do partnerships and corporations differ in accounting?
the main difference is that the earnings of the partnership pass directly to the owners/partners of the business. A corporation is a seperate legal entity and are taxed seperately and the earnings are only passed to the owners/shareholders when dividends are paid.
What does LE mean in accounting?
In accounting, "LE" typically stands for "Limited Edition" or can refer to "Liabilities and Equity" in the context of financial statements. However, it is more commonly associated with "Legal Entity," which denotes a business organization recognized by law as a separate entity that can enter contracts, own assets, and incur liabilities. Understanding the context is crucial, as "LE" can have different meanings based on the specific accounting scenario.
Distinguish between legal entity and accounting entity?
An accounting entity is the economic unit, the business that is being accounted for and not necessarily a legal entity (Sands J 2002). I currently manage and submit accounting reports for a business unit within the company I work for, the business unit is an accounting entity with retained earnings, assets, etc... however the business unit is not in itself a legal entity, it is a department within a legal entity.
Difference between a branch and a subsidiary?
a branch is part of the same legal entity. A subsidiary is a distinct legal entity, within a larger company structure.
What is the difference between a legal entity and a legal person?
A natural person is a human. A legal person is a company or person.
Is a consolidated entity an accounting and a legal entity?
A legal entity is normally formed with formal registration (eg commercial registeratin) which is governed by an established law. However a consolidated entity is a REPORTING entity to provide users of financial statements with information about a legal entity (parent company) plus the financials of other entities (with separate legal entities) under their control.
What is the major difference between a corporation and other kinds of businesses?
A corporation has a separate legal entity apart from that of the owners and workers.
What is substance over form concept in accounting?
SUBSTANCE OVER FORM is an accounting concept where the entity is accounting for items according to their substance and economic reality and not merely their legal form.
What is the difference between inter-company and intra-company?
Inter company transaction is between two or more related legal entities while intra company transaction is within the same legal entity.
The Proprietary Theory vs the Entity Theory?
PROPRIETARY THEORYPROPRIETARY THEORY is where no fundamental distinction is drawn between a legal entity and its owners, i.e. the entity does not exist separately from the owners for accounting purposes. The primary focus is to report information useful to the owners, and therefore the financial statements are prepared from their perspective.ENTITY THEORYENTITY THEORY is where a legal entity is regarded as having a separate existence from the owners. The financial statements are prepared from the perspective of the entity, not its owners.
What is the Difference between partnership organization and a corporate business organization?
There are several differences, but the main one is this. A corporation is a separate legal entity. A partnership is not.
What is the difference between Company and Corporation?
Company means those legal entity which are registered under companies act 1956 and corporation means those legal entity which are guided under the parliamentary act 1949 like LIC,FCI etc. Ganesh Khatua +919439719947
How do partnerships and corporations differ in accounting?
the main difference is that the earnings of the partnership pass directly to the owners/partners of the business. A corporation is a seperate legal entity and are taxed seperately and the earnings are only passed to the owners/shareholders when dividends are paid.
What is the difference between municipality and corporation?
Only the very technical difference that the "municipal corporation" is the legal entity comprising the government, and the municipality is the territory which forms the jurisdiction of the municipal corporation. It is like the difference between "state" (in the sense of "head of state", not a division of the United States) and "country". Very technical.
